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Banco Agrícola remains best bank in El Salvador, with net profit margins up 30.38% in the fourth quarter of 2007 compared with a year before. Net income totalled $237.2 million in 2007, an increase of $61.8 million on 2006 and total assets increased to $3.79 billion, up from $3.33 billion the year before.

Standard Chartered

After years of plenty, there are leaner times ahead in central and eastern Europe. That’s the stark prospect facing bankers in the wake of the continuing sub-prime mortgage woes in the US and western Europe and the associated global credit crunch. But while the banking markets in central and eastern Europe have become more challenging, they still remain highly profitable.

The transatlantic exchange group this June announced a strategic partnership with the State of Qatar to invest $250 million in a 25% stake in the Doha Securities Market. The DSM will adopt NYSE Euronext technology and gain an international partner while NYSE Euronext will gain a foothold in the fast expanding Middle East.

The bank with the best story to tell in Spain over the past year is Banesto, a member of the Santander family.

Nordea remains the market leader in Sweden, with assets not far off those of second- and third-placed SEB and Handelsbanken combined. But SEB had the better year, with assets increasing by 21.2%, operating profit up by 9%, net profit 8% higher and return on equity of 19.3%. Moreover, despite a poor share performance in 2007 – in line with almost all banks globally – compound five-year growth in total shareholders’ equity is 10.76%: higher than Nordea’s 7.58%.

Bank of Cyprus is not only the largest bank in the country but also the best run. With net income growth of 55%, a cost to income ratio of 43.6% and a return on equity of 27.6%, it is hard to fault.

With a population of just 5.21 million people producing a GDP of a mere $3.7 billion, Kyrgyzstan is not going to be home to any really large financial institutions. The biggest bank in Kyrgyzstan, with $130 million in deposits accounting for a 22.1 % market share, is Asia Universal. It is also the best performer. It is Kyrgyzstan’s fastest-growing mortgage provider and is the only Kyrgyz entity to have received an international credit rating. Total shareholders’ equity rose 212% to $36.5 million in the past year, while net income climbed 246% to $2.7 million. In both of those measures, as in total assets and customer accounts, Asia Universal is by far the country’s leader. It is also the first bank to offer internet banking services, and the only one to establish a dedicated control and compliance department. It is also competitive regionally, with branches in the Ukraine, Kazakhstan and Latvia, as well as a representative office planned for China later this year.

Butterfield Bank Group reported a 2008 first-quarter net income of $36.3 million, the second highest on record for the group and up 1.8% year on year. Total operating revenue grew year on year by $16.2 million, or 14.6%, to $127.1 million. The loan portfolio increased year on year by 11%, or $419 million, to $4.2 billion. This increase reflected increased loan demand across the banking group, in particular in Bermuda, up 15.8%, Barbados, up 11% and the Bahamas, up 104.3%. The group’s balance sheet remains highly liquid, with a loan to customer deposits ratio of 37.8% compared with 39.2% a year ago. Deposits with banks and investments increased year on year by 14% to $8.1 billion and amount to 62.9% of total assets.

JPMorgan Consistency and ability to execute landmark transactions makes it a clear winner in emerging markets.

It was a hit and miss year for the UAE’s leading banks. Abu Dhabi Commercial Bank found itself caught up in the US sub-prime crisis, leading to a $152 million writedown in 2007, with the possibility of more to come. Dubai Islamic Bank, too, is undergoing a difficult period after police detained the former chief executive of Deyaar Development, of which DIB owns 41%, as part of an investigation into a possible fraud.

After being among the top performers of 2007, Asia-focused hedge funds are suffering this year. In 2007, the HFR Asia composite hedge fund index returned more than 17%, and the Asia ex-Japan index almost 40%. Year to end-May 2008, however, the Asia ex-Japan index is down almost 10%. If investors piled in based on past performance, they will now be kicking themselves.